Building new homes? You could be eligible for a share of the new £3 billion Home Building Fund

Following the recent announcement of the ‘Capacity Fund’, primarily for larger developments, we take a look at what other funds are available to increase the number of new homes being built in England, particularly for smaller builders.

Let’s talk specifically about one of the more recent funding opportunities, the Home Building Fund consisting of £3 billion towards housing developments and infrastructure. £1 billion of which has been earmarked for smaller builders to deliver 25,000 new homes by 2020.

If you are planning to build a residential development have a read through the criteria below to see if you could be eligible for some of the funds.

The Home Building Fund

Finance can be a barrier for small builders and innovative schemes, so as well as helping larger builders and developers, the Home Building Fund is also open to small builders, community builders, custom builders and regeneration specialists.

So whether you are building homes for sale or rent, the fund provides up to 5 years finance to meet the development costs of your project.

Who can apply for the Home Building Fund?

A builder or developer who is eligible for the funding must:

Be building a minimum of 5 homes

Be building in England

Be a private sector organisation with majority control over the site

Demonstrate that without the loan the development would not progress as quickly, or at all

Successful applicants will be able to secure loans of between £250,000 and £250million.

Housing associations will also be able to bid for loans from the fund.

How to apply for the Home Building Fund?

The first step is to contact the Homes Community Agency (HCA) by email, phone or post. If your project meets the eligibility criteria, you will be put in touch with the investments team who will help you with your application.